In view of the prevailing situation due to COVID-19 pandemic and representation received from the Depositories, it has been decided to further extend the timelines for compliance with the regulatory requirements by DPs / RTAs / KRAs.
Securities and Exchange board of India
CIRCULAR
SEBI/HO/MIRSD/DOP/CIR/P/2020/142
July 29, 2020
To,
1. All Depositories
2. Depository Participants through Depositories
3. Registrars to an Issue & Share Transfer Agents (RTA)
4. KYC Registration Agency
Madam / Sir,
Subject: Relaxation in timelines for compliance with regulatory requirements
1. In view of the situation arising due to COVID-1 9 pandemic, lockdown imposed by the Government and representations received from the Depositories, SEBI had earlier provided relaxations in timelines for compliance with various regulatory requirements by the depository participants (DPs) / Registrars to an Issue & Share Transfer Agents (RTAs), vide circular nos. SEBI/HO/MIRSD/DOP/CIR/P/2020/62 dated April 16, 2020, and SEBI/HO/MIRSD/DOP/CIR/P/2020/72 dated April 24, 2020. Later, vide circular SEBI/HO/MIRSD/DOP/CIR/P/2020/112 dated June 30, 2020, timelines / period of exclusion was further extended for certain compliance requirements.
2. In view of the prevailing situation due to COVID-19 pandemic and representation received from the Depositories, it has been decided to further extend the timelines for compliance with the regulatory requirements by DPs / RTAs / KRAs, mentioned in the SEBI circulars, as under:
| Compliance requirements for which timelines were extended vide SEBI circular No. SEBI/HO/MIRSD/DOP/CIR/P/2020/62 dated April 16, 2020. | S. Nos. for which timeline is extended | Extended timeline / Period of exclusion |
| Processing of the demat request form by Issuer / RTA. | I | Period of exclusion shall be from March 23, 2020 till September 30, 2020.
A 15-day time period after September 30, 2020 is allowed to Depository / DPs, to clear the back log. |
| Processing of the demat request form by the Participants. | II | |
| KYC application form and supporting documents of the clients to be uploaded on system of KRA within 10 working days. | III |
–
| Compliance requirements for which timelines were extended vide SEBI circular No. SEBI/HO/MIRSD/DOP/CIR/P/2020/72 dated April 24, 2020. | S. Nos. for which timeline is extended | Extended timeline / Period of exclusion |
| Submission of half yearly Internal Audit Report (IAR) by DPs for half year ended March 31, 2020. | II | September 30, 2020. |
| Redressal of investor grievances. | III | Period of exclusion shall be from March 23, 2020 till September 30, 2020.
A 15-day time period after September 30, 2020 is allowed to Depository/ DPs, to clear the back log. |
| Transmission of securities. | IV | |
| Closure of demat account. | V | |
| Systems audit on annual basis. | VI | September 30, 2020 for the financial year ended on March 31, 2020. |
3. All other conditions specified in the aforementioned circulars shall continue to remain
4. Depositories are directed to bring the provisions of this circular to the notice of their participants and also disseminate the same on their websites.
5. This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992, and Section 19 of the Depositories Act, 1996 to protect the interests of investors in securities and to promote the development of, and to regulate the securities markets.
Yours faithfully
Narendra Rawat
General Manager
Market Intermediaries Regulation and Supervision Department
Share holders are submitting their share certificates, demat request for address, bank changes, signature change, Transmission to Demat a/c. Revalidation/Payment of Unpaid Dividends etc. to their RTAs.
We submit that following issues should be urgently taken up and resolved by appropriate orders to all concerned : Stock Exchanges, Companies, RTAs, RTA Assotiation, Banks etc.
1. Uniform Documentation Form procedure should be mandatory for all RTAs. Presently each one is asking for own forms, which is not correct.
2. When documents are submitted for first time with documents the RTAs have 15 days’ time limit to comply or to give resons for shortfall in required compliance documents. When the shareholder/investor submits document(s) they raise other points/issues.
Therefore, we submit that all RTAs, concerned Entities must be ordered to raise all issues on first submission of documents. This will save long procedural delays and hardships to retail investors.
3. If SEBI have already issed Uniform Forms as mentioned above, please enforce its compliance by all RTAs without excuses. If not, please issue the relevant forms for all matters and display on its website urgently.
4. Different RTAs are asking for Affidavits for various issues of different Non-Judicial Stamp Papers. Please order RTAs and their Association to adhere to uniformity of value of stamp papers by all. In recent times, some states have increased the value of stamp papers to be used for investment related compliance. The RTAs must display each state’s applicate value of stamp papers to be used. Since the laws of state in which RTAs are located/ their Registered Offices are located, this must be mandatory for all of them. It will assure the investors that they are submitting appropriate value of stamp papers.
5. The Central Government is aggressively persuing Digital Transactions and Communication, minimise and eliminate the use of paper to the maximum, we submit that
a. Digital Signature of the shareholder/investor should be sufficient for Proof of Identity by PAN, Aadhar, Utility Bills etc.
b. When CKYC is submitted by the investor, it must be uniformly applicable for MF, Shares, Bonds, Bank Proof, Address Proof. No paper proof should be demanded by anybody. Verification must be done by the RTA, Stock Exchange, Commodity Exchange etc. entities themselves instead asking from the investor/shareholder every time.
c. When the Demat a/c. holder opens a/c. with DP he/she has to furnish all information including address, bank details etc. That should be sufficient for all purposes by RTAs also. But they are still asking for bank details and address proof not older than 3 months separately. This is not relevant.
d. In the course of interaction with shareholders, the RTAs ask for fresh documents if the period is beyond 3 months. If a shareholder is in continued communication with the RTA, he/she has to furnish details if changed.
e. When a shareholder gives PoA the PoA Holder submits it to the RTA. Like one RTA all RTAs have to register it on permanent records for other companies represented where he/she is shareholder. Please instruct all RTAs to follow this practice for ease and convenience. This is part of Hon’ble PM’s goal of Ease of Doing Business. It should be applicable to all kind of activities under your jurisdiction.
f. Resolution of complaints and disputes must be done in 15 days. The formats should be fine tuned for efficiency and effectiveness by SEBI experts and all entities in its juridiction.
Undue delay is done simply on grounds of procedures.
g. When the government has introduced Aadhar Cards, this must be single proof of citizens/shareholders/investors’ identity. We find it difficult to comprehend why it is not honoured by concerned departments and entities. Please take prompt action for the benefit of Economic Development. Otherwise all talk will be verbosity and no concrete results could be achieved.
We appeal your goodselves to take suitable steps and give firm orders to all concerned to obey.
Thanks.
SEBI is extending various timelines relating to stock exchanges etc. where public money is invested in various instruments.
While timelines are extended for compliance during lock downs from 23-3-2020. Unlock is announced from 1-7-2020. Therefore, offices are also opening up and working. The stock exhanges and various entities are working. When the markets are opened and investors are during business/trading/investiments it is highly irregular to go on extending timelines. The relevant agencies including RTAs must also work regularly and fulfill their duties.
Presently, they are finding refuge behind SEBI circulars and quoting to investors. This is both legally and morally not correct.
Please immediately issue circular/notification and give wide media publicity in print and electronics media.
Thanks.
RTAs are not processing matters pending/continuing prior to Lock Downs: Transfer, Transmission, Address & Bank details, Unpaid Dividends, Duplicate Share Certificates etc.
Please give appropriate orders for extending timelines for UNPAID DIVIDENDS AND RELATED SHARES DEADLINES and save Shareholders from financial loss, inconvenience and hardships.